Sunday, April 4, 2010


I woke up this morning and immediately realized that the easter bunny had visited my home. There were small gold easter eggs hidden throughout my house and I knew immediately that the pagan holiday of kli was alive and well. I hurried around the house and began collecting the valuable gifts before the shark Joe knew they were left there and swooped in for the kill. I spotted an especially nice one glistening behind my desk an virtually jumped to reach it falling and striking my head on the hardwood....which jolted me out of my Easter egg dream and back to reality. It was really depressing for a few moments this morning until I realized it was only human greed. The old human weakness of avarice taking over my dreams now. I even was trying to get all of those eggs before my little babies got up and of course before Joe got there....that baastid. I knew the rest of the blogasphere wouldn't know they were there but that Joe was another problem. Happy bunny day all gl....

March 18 (Bloomberg) -- Central banks added the most gold to their reserves since 1964 last year amid the longest rally in bullion prices in at least nine decades, data compiled by the World Gold Council show.

Combined holdings rose 425.4 metric tons to 30,116.9 tons, an increase worth $13.3 billion at last year’s average price, according to the data. India, Russia and China said last year they added to reserves. The expansion was the first since 1988, the data from the London-based council show.

Central banks, holding about 18 percent of all gold ever mined, are expanding their holdings for the first time in a generation as investors in exchange-traded funds amass bullion as an alternative to currencies. Holdings in the SPDR Gold Trust, the biggest ETF backed by the metal, are at 1,115.5 tons, more than the holdings of Switzerland.

“There’s clearly been a renaissance of gold in central bankers’ minds,” said Nick Moore, an analyst at Royal Bank of Scotland Group Plc in London. “It’s not just been central banks taking on gold, but a general shift for physical gold in the investment sector.”

Official reserves of central banks and governments may expand by another 187 to 218 tons this year, CPM Group forecast last month. The council’s data also includes the holdings of the International Monetary Fund, European Central Bank and other international and regional bodies.

Gold climbed 24 percent last year, reaching a record $1,226.56 an ounce in December. World holdings rose 527 tons in 1964 and climbed 832.7 tons the year before that, according to the London-based industry

‘At the Edge’

“Gold is quietly, at the edge, becoming the world’s second reservable currency, supplanting the euro and rivaling the dollar,” Dennis Gartman, a Suffolk, Virginia-based economist and hedge-fund manager, said in his Gartman Letter today. “The trend shall continue months, if not years, into the future.”

Gold is up 2.7 percent this year and traded at $1,126 an ounce at 11:29 a.m. in London. The U.S. Dollar Index, a six- currency gauge of the greenback’s value, is up 2.7 percent this year after slipping 4.2 percent in 2009. Bullion typically moves inversely to the U.S. currency.

Higher prices for gold, especially in euros and sterling, may deter countries from adding further to reserves, RBS’s Moore said. Bullion climbed to a record 838.43 euros on March 5, Bloomberg data show.

“Central banks might feel somewhat embarrassed to be buying gold at records” in some currencies, Moore said. “When you have an asset trading at an all-time high, the temptation is not to purchase more.”

in case you missed this


  1. Wishing each and all a merry Nimrod and Baal Day.

  2. Someone ran over the wild bunny living in my backyard last month in the road out front. Mangled fur was everywhere, now the culprit is fessing up after killing the bunny who laid the golden egg in a drive by.

  3. coincidental....remember your posts in early 2009 when you said you were looking at the charts (or whatever) and you commented that the slide in the market looked orchestrated and accelerated.....well its very obvious now that the last moves in the SnP were all choreographed to provide "THE BOTTOM"..hehehehhe. Now we will see how long this will last.

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  5. kli,

    Did the thought crossed your mind that may be Joe left them for you as a way to tell you he visited, heheeeee!


  6. If there is a small rate hike tomorrow, you might see the market heads towards the 200 week moving average after the customary small pullback where the bears get slaughtered yet again as commodities take a small pullback.

    Best to have ammo dry until after policy change. Gaps trades should still work fine if you find an opportunity get out fast early in the day.

  7. It wouldn't be embarrassing if the price the central banks were buying it at was 1% of the literal value of the physical metal. But "financial innovation" rules the day for now.

  8. SWC and LVS kicking butt gain, heheeeee!


  9. PAL getting it done here big time. - Analyze.